(Yicai) Sept. 7 -- BlackRock has rejected media reports that the US' biggest asset manager is withdrawing from the Chinese market after the firm said it will liquidate its China Flexible Equity Fund.

BlackRock's commitment to the Chinese market remains unchanged, the New York-based firm told Yicai Global today, adding that the China Flexible Equity Fund is a China-themed offshore fund, not a product under BlackRock's mutual funds in China.

BlackRock Global Funds announced yesterday that it would terminate the China Flexible Equity Fund on Nov. 7 because of a lack of new investor interest. Other factors were the fund attracting only USD21 million of investment and high management costs, the financial giant told Yicai.

Securities Times also reported today that even though BlackRock's supposed exit from China is just a rumor, some people speculate that it decided to withdraw and liquidate the small-sized fund due to regulatory risks. BlackRock chose to liquidate the fund after fully considering the interests of investors and shareholders, the report added.

Founded in October 2017, China Flexible Equity Fund is an offshore fund under BGF. Most of its investors are from Europe, the Middle East, and Africa. Last year, it returned minus 30 percent, while the figure for the previous two years was minus 17 percent and 37 percent, according to BlackRock's website.

Editors: Xu Wei, Futura Costaglione